KUALA LUMPUR: ACE Market-bound Crest Group Berhad is optimistic about its long-term outlook, driven by its strong competitive position in the industry, according to managing director Lim Siong Wai.
Lim said that the imaging, analysis, and testing market in Malaysia has experienced substantial growth, expanding from RM4.33 billion in 2020 to RM7.25 billion in 2023, with a compound annual growth rate of 18.7 per cent.
This expansion is fueled by rising demand across key sectors like electrical and electronics (E&E), semiconductors, automotive, aerospace, healthcare, life sciences, material sciences, and oil and gas, as well as by government support and the increasing adoption of IoT and Industry 4.0 technologies.
Aligned with these growth trends, Lim said the group is focused on expanding its operations by opening new branches in China and Vietnam and increasing its workforce to better serve current customers and attract new ones.
Additionally, Crest plans to establish a centralised headquarters in Selangor to streamline operations in Malaysia's Central region.
Lim said the group will also invest in advanced imaging and sample management equipment for its demonstration rooms in Malaysia, China, and Thailand to enhance the customer experience.
For the second quarter ended June 30, 2024 (Q2FY24), Crest reported a pre-tax profit of RM3.7 million, supported by revenue of RM39.63 million. The group maintained a healthy gross profit margin of 29.1 per cent and a pre-tax profit margin of 9.3 per cent for Q2FY24.
For the first half of FY24 (1HFY24), Crest posted total revenue of RM79.28 million and a pre-tax profit of RM6.62 million. The results include one-off listing expenses amounting to RM2.09 million. Adjusted for these expenses, the group's pre-tax profit would have been RM8.71 million.
As this is Crest's first interim financial report ahead of its upcoming listing on Bursa Malaysia's ACE Market on October 9, 2024, there are no comparable figures for the preceding quarter.
The group has priced its IPO at 35 sen per share, aiming to raise RM45.75 million through the issuance of new shares, with RM14.52 million allocated for expansion plans.
During Q2FY24, Crest's imaging, analytical, and testing solutions segment contributed RM32.77 million, or 82.7 per cent of total revenue, while the after-sales services segment generated RM6.86 million, or 17.3 per cent.
For 1HFY24, the imaging, analytical, and testing solutions segment accounted for RM64.9 million, or 81.9 per cent, and after-sales services contributed RM14.4 million, or 18.1 per cent of total revenue.